Spring transformation in an important system of state subsidies: this is how the rules may change
The rules for cash grants (EKD) awarded on the basis of individual government decisions may undergo significant changes this spring, which is expected to give a new direction to the growth of the Hungarian economy – EY draws attention to the fact. During the applications, investments by companies that create high added value and also carry out research and development will be given priority, among others.
The amendment package concerning EKD grants has been subject to social consultation. The aim of the draft is to promote high added value, low environmental impact investments, as well as the development of local enterprises through the system. Accordingly, when assessing the grant, projects related to research and development (R&D), investments that increase added value produced by the supplier value chain, the SME sector[1] and internationally competitive domestic companies will now enjoy a specific advantage. When determining the amount of support that can be awarded individually, the value of R&D expenditures, the amount of renewable energy produced, and existing educational collaborations may become criteria, among others.
“The amendment proposal leads to two important directions. On the one hand, submitting an application may require much more thorough preparation and planning than before, and investors must definitely pay special attention to this. On the other hand, projects and investments that also include innovation and research and development will come into even greater focus,”
– emphasized Tamás Szűcs, EY’s partner responsible for taxation and state aid, head of the state aid team.
“Businesses should definitely consider whether they are currently conducting or planning research and development. In many cases, we find that companies do not even think about the fact that they are conducting R&D activities and can thus gain significant benefits and subsidies. During our financial, but even technical, negotiations, it often happens that my colleagues and I identify innovative processes that our clients would not have thought of before,” the expert added.
Related news
Hungarian companies are already being attacked using AI
According to research by EY, AI has become one of…
Read more >EY: Energy procurement has become a key issue – fluctuating prices are affecting the competitiveness of more and more companies
The majority of companies are concerned about securing the energy…
Read more >Spring tax package 2025 – wide-ranging changes in several tax codes
The Ministry of National Economy has submitted the draft of…
Read more >Related news
Saving money, searching online, hunting for deals – this is how Europe will shop in 2025
58% of European shoppers still don’t expect their purchasing power…
Read more >Hamburger picture 2025 – this is how Hungarians eat hamburgers
Hungary’s undisputed favourite is the beef burger – preferably loaded…
Read more >A campaign to encourage the consumption of Trappist cheese has been launched
The Ministry of Agriculture (MA) and the Agricultural Marketing Center…
Read more >